FINANCIAL HIGHLIGHTS Education Harris County Department of June 20, 2018

HIGHLIGHTS of INTERIM FINANCIAL REPORT BUDGET AMENDMENT REPORT May 31, 2018 and BUDGET AMENDMENT REPORT for the June 20, 2018 Board Meeting (unaudited) Click below for a 1 minute Briefing: http://www.showme.com/sh/?h=qG4Gghk Prepared by: Business Support Services Division

Posted on our website at http://www.hcde- texas.org/default.aspx?name=013.BusinessHome Linked from State Comptroller’s website http://www.texastransparency.org/local/schools.php

INTERIM FINANCIAL REPORT (unaudited) GENERAL FUND Balance Sheet at May 31, 2018

The General Fund balance at 9/1/17 is $28,122,487 INTERIM FINANCIAL REPORT (unaudited) ASST. SUPERINTENDENT FOR BUSINESS SERVICES’ MESSAGE As of May 31, 2018 The General Fund balance at 9/1/17 is $28,122,487 As year end adjustments are completed, a budget amendment will be submitted to the board for items assigned, restricted and committed that will roll forward into FY 2018. As of May 31, 2018 activity includes:

INTERIM FINANCIAL REPORT (unaudited) As of May 31, 2018 Financial Ratios Level One - Indicator of financial strength Level Two - Indicator of efficient leverage Level Three - Indicators of efficiency Level Four - Indicator of revenue growth

INTERIM FINANCIAL REPORT (unaudited) As of May 31, 2018 Indicator of Financial Strength Percent of Fund Balance to G/F Expenditures Ratio What is the percent of rainy fund balance? (*)Unadjusted Working Capital Ratio What is the cash flow availability for the organization? Unassigned Fund Balance $15,585,893 ------------------------------ ---------------- Total G/F Expenditures $34,513,191 Goal : > 30% of G/F Exp. Benchmark: 10% to 29% Danger: Under 10% Total Current Assets Less Total Current Liabilities $39,012,395 – $1,950,087 = $37,062,308 Goal : >$15,000,000 Benchmark : $10M to $15M Danger : Under < $10M 45% FY18 38% FY17 37M FY18 36M FY17 Details on Schedule 3 Details on Schedule 1 Budgeted 18% Budgeted $15M

Unassigned Fund Balance Ratio G/F Revenue Less Facility Charges INTERIM FINANCIAL REPORT (unaudited) As of May 31, 2018 Indicator of Efficient Leverage Reserves Unassigned Fund Balance Ratio How much is available in reserves? Debt to Income Ratio What is the ability of HCDE to cover its debt payments? Unassigned Fund Balance $15,585,893 ---------------------------------------- -------------------- Total Fund Balance $37,062,308 Goal : > 75% Benchmark: 50% to 75% Danger: <50% Annual Principal and Interest Payments on Term Debt and Capital Leases $2,999,125 G/F Revenue Less Facility Charges $43,453,009 – 3,424,582 ----------------------------------------------------- Goal : <25% of annual revenue Benchmark : 25% to <49% Danger : Over > 50% 42% FY18 40% FY17 7% FY18 6% FY17 Details on Schedule 1 Details on Schedule 5 Budgeted 64% Budgeted 6%

INTERIM FINANCIAL REPORT (unaudited) As of May 31, 2018 Indicators of efficiency Tax Revenue to Total Revenue Ratio How efficient is HCDE at leveraging local taxes? (Current) Indirect Cost to Tax Ratio How much dependency on indirect cost from grants? Current Tax Revenue $22,187,054 Total Revenue $71,971,884 Goal : <20% of revenue Benchmark: 20% to 30% Danger: Over > 30% Indirect Cost General Fund $1,019,851 Total General Fund Revenues $43,453,009 --------------------------- ----------------- -------------------------------------------------------- Goal : >5% Benchmark : 2% to 5% Danger : Under < 2% 31% FY18 26% FY17 2% FY18 2% FY17 Details on Schedule 2 Details on Schedule 3 Budgeted 21% Budgeted 3%

INTERIM FINANCIAL REPORT (unaudited) As of May 31, 2018 Indicator of revenue growth Fee for Service Revenue Ratio How are revenues spread across All Funds? Fee for Service Revenue Growth Ratio What is the market growth for fee for services? Total Fee for Service Revenues (G/F) $16,749,937 ------------------------------------- Total Revenues $71,971,884 Goal : >30% of annual revenue Benchmark: 10% to 29% Danger: Under 10% Fee for Services Current Year Less Fee for Services Last Year $16,749,937 – 17,599,814 Fees for Service Last Year $17,599,814 ----------------------------------------------------- Goal : >3% + growth Benchmark : 0% to 3% Danger : Under < 0% 23% FY18 22% FY17 -5% FY18 10% FY17 Details on Schedule 14 Details on Schedule 14 Budgeted 21% Budgeted 5%

FY 2017-18 FUND BALANCE – BUDGETED ACTIVITY

INTERIM FINANCIAL REPORT (unaudited) GENERAL, SPECIAL REVENUE, DEBT SERVICE FUNDS, CAPITAL PROJECTS, AND INTERNAL SERVICE FUNDS Revenues Budget to Actual at May 31, 2018

Adopted Budget and Amendments

INTERIM FINANCIAL REPORT (unaudited) GENERAL, SPECIAL REVENUE, DEBT SERVICE FUNDS, CAPITAL PROJECTS, AND INTERNAL SERVICE FUNDS Expenditures Budget to Actual at May 31, 2018

INTERIM FINANCIAL REPORT (unaudited) FY 2017-18 Donations Report All Funds as of May 31, 2018

INTERIM FINANCIAL REPORT (unaudited) FY 2017-18 Donations Report All Funds as of May 31, 2018

INTERIM FINANCIAL REPORT (unaudited) TAX COLLECTIONS COMPARATIVE ANALYSIS Fiscal Year-To-Date at May 31, 2018 See Tax Calculator at  http://www.hcde-texas.org/default.aspx?name=TaxCalculator

INTERIM FINANCIAL REPORT (unaudited) TAX COLLECTIONS Fiscal Year-To-Date at May 31, 2018 (9th month / 12 month)

INTERIM FINANCIAL REPORT (unaudited) TAX COLLECTIONS Fiscal Year-To-Date at May 31, 2018 (9th month / 12 months) a) 2017 Tax Rate = $0.005195/$100 Property Assessment/Appraisal - --> Annual Tax on a $200,000 - $40,000 = $160,000/100 x .005195 = Residential Property = $8.32 (net of 20% homestead exception.) b) $600,000/$21,698,803 = 2.77% Collection and assessment costs

INTERIM FINANCIAL REPORT (unaudited) DISBURSEMENTS – ALL FUNDS May 31, 2018

INTERIM FINANCIAL REPORT (unaudited) Segment Division Data As of May 31, 2018

HIGHLIGHTS Of BUDGET AMENDMENT REPORT June 20, 2018 Board Meeting (unaudited) Amendments General Fund= $13,098 Special Revenue Fund= $4,559,077

INTERIM FINANCIAL REPORT (unaudited) FY 2017-18 BUDGET AMENDMENT REPORT June 20, 2018 General Fund

INTERIM FINANCIAL REPORT (unaudited) FY 2017-18 BUDGET AMENDMENT REPORT June 20, 2018 Special Revenue Fund

INTERIM FINANCIAL REPORT (unaudited) FY 2017-18 BUDGET AMENDMENT REPORT June 20, 2018 Special Revenue Fund Continued…

Construction PFC Update June 20, 2018

Value…Opportunity…Service Closing on 2016 PFC Bond Series $225,000 Budgeted Value…Opportunity…Service

Value…Opportunity…Service Available 2016 PFC Bond Series Funds Value…Opportunity…Service

Timeline pending review by the Development Plan Committee Nov-16 Approval of Pool of architects and engineers Board Jan-17 Review and presentation of architect concepts PFC Oct-17 Approval of architect contract Jan -18 Review of Schematic Design Apr-18 Tentative review and approval of architect design development May-18 Approval of method of construction per Ch 2269 Jul-18 Tentative Procurement of Construction Project Aug-18 Tentative Construction Award Date Jul 19 Construction Period- 12 months est. Value…Opportunity…Service

INTERIM FINANCIAL REPORT (unaudited) Value…Opportunity…Service I certify that the foregoing information is true and accurate to the best of my knowledge. /s/ Jesus J. Amezcua, RTSBA,CPA, Ph.D., Asst. Supt. for Business Support Services /s/ Rosa Maria Torres, RTSBA, Chief Accounting Officer Value…Opportunity…Service